Hot air over greenhouse gases
By
LORRIE GOLDSTEIN
Last Updated: 9th April 2009, 3:04am
Every time Canadian politicians tell you we can grow the economy while simultaneously reducing greenhouse gas emissions, remember this.
They are talking out of both sides of their mouths.
My favourite example was Ontario Premier Dalton McGuinty promising to reduce greenhouse gas emissions to fight global warming, while simultaneously boasting about using taxpayers' money to subsidize the production of GM's Camaro muscle car in Oshawa.
That's the intellectual equivalent of promoting clean air while sucking on a tail pipe.
The latest evidence greenhouse gas reductions and recession go hand in hand is that for the first time since it was created in January, 2005, Europe's cap-and-trade market, the Emissions Trading Scheme, has reported carbon dioxide emissions of major European industrial emitters dropped in 2008, just as the global recession hit.
Prior to that, despite the fact the purpose of cap-and-trade is to reduce emissions, they went UP in 2005, 2006 and 2007, logical considering that the European Union and its member states initially gave out (for free) more emission permits to industry than their actual emissions.
You see, the idea is to give out fewer permits (the "cap" in cap-and-trade), auction them (so companies don't ask for more than they need) and then use that money to further reduce emissions, none of which the EU did.
Believe it
If you're having trouble believing politicians could be that stupid (a) yes, they can (b) these are the same folks claiming they can "fix" the climate and (c) cap-and-trade is on its way to North America.
In Europe, even though companies got the permits for free, they passed along the costs to consumers as if they had paid for them. Guess what happened to electricity prices?
The link between lower emissions and recession goes back to the creation of the Kyoto accord, when its drafters retroactively and deliberately chose 1990 as the base year for reducing emissions.
That transformed Russia, an environmental disaster area whose support was needed to bring Kyoto into legal effect, into a global "leader" in reducing greenhouse gas emissions -- not because of anything it did, but because its economy collapsed post-1990, after the fall of communism and the Berlin Wall.
In other words, Russia became a "leader" in fighting global warming, with billions of dollars worth of "hot air" to sell to other nations, because its economy went into recession at the retroactively "right" moment chosen by Kyoto's drafters.
Such are the accounting tricks and shell games (carbon credits are another) on which Kyoto is built.
A recession is the only effective way we have to lower carbon dioxide emissions at present because we lack the technological ability to stop them from entering the atmosphere when we burn fossil fuels and renewable energy isn't at the technological stage where it can be a viable replacement.
Claims
That's why the things politicians claim will reduce emissions -- carbon taxes, cap-and-trade, carbon credits/offsets, don't.
What they really do is allow emissions, at ever-escalating prices, the theory being that when the price gets too high, people will be forced to use less fossil fuel energy.
Only thing is, the more you make people spend on energy, the less they have to spend on everything else, leading to more economic contraction, meaning fewer greenhouse gases.
Which is great -- if you like recessions. Otherwise, not so much.